Sushiswap: The evolution of Uniswap?
Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.
Editor's Note: This article comes from
Blue Fox Notes (ID: lanhubiji)
, reprinted by Odaily with authorization.
In the field of DeFi, DEX is the largest position. At present, Uniswap, Balancer, and Curve are among the top three. In addition, there are more than a dozen DEXs with a daily transaction volume of more than 10 million U.S. dollars. The transaction volume of DEX in the last 7 days has exceeded 2.68 billion U.S. dollars. The trading volume of DEX is increasing, and in fact it has become the future opponent of CEX.
In addition to more than a dozen DEXs with a certain trading volume, there are more and more exchanges optimized for Uniswap, and various swaps are still on the way. Follow-up Blue Fox Notes will also introduce various swaps to you one after another. The first thing I will introduce today is Sushiswap, Sushi means sushi. So, will Sushiswap be delicious? Will it be better than Uniswap? Does it have a chance to overtake Uniswap?
Sushiswap continues the core design of Uniswap
Sushiswap did not build a new model, it still continues the core design of Uniswap, and it is still the AMM model. The token pool of Sushiswap is basically the same as that of Uniswap.
The main difference between the two is that Sushiswap has added token economic incentives, that is, it distributes part of its transaction fees to holders of the Sushiswap token SUSHI.
In addition, on the front-end interface, Sushiswap is also consistent with Uniswap. In this way, if other DeFi protocols (especially those that have already integrated Uniswap) want to integrate Sushiswap, the conversion is relatively easier.
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The core of Sushiswap is to increase token economic incentives
Uniswap leaves a large piece of reclaimable land for various other swaps
Blue Fox Notes previously predicted that Uniswap would launch its own token incentive mechanism soon. However, due to the rapid increase in its trading volume, it has an obvious first-mover advantage on DEX, which further reduces its willingness to launch tokens. Everything is under control, and the years are safe and sound.
However, the development of the DeFi field is very fast, and the current leader may not be the future leader. The same is true from the perspective of the locked amount and market value of assets. The rankings change significantly every year. Uniswap is facing competition from a bunch of various swaps. Liquidity provision itself does not have an absolute moat.
Since Uniswap does not launch a token incentive system, this leaves a large gap in the DEX market. In this blank space, various swaps began to perform, such as moonswap and Sushiswap, and some other swaps.
Users who provide liquidity to Uniswap are incentivized with fees. However, there are two problems with this simple fee incentive:
1) It is not fair enough for users who participated in liquidity provision early.
2) The loss of impermanence cannot be compensated.
Sushiswap's Liquidity Mining Incentives
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From this token model, Sushiswap’s token SUSHI can capture 0.05% of transaction fees, that is, the value of SUSHI is linked to its transaction volume. On Sushiswap, the greater the transaction volume, the higher the fees captured by SUSHI. The trading volume of Uniswap in the past 24 hours is about 150 million US dollars (as of the writing of Blue Fox Notes), assuming that Sushiswap can reach this level of trading volume every day, then the value of 75,000 US dollars that SUSHI tokens can capture in one day, Annualized could capture over $27 million in value.
